(Cost-Residual Value) X Actual Production this period/ Estimated Total Production

Declining-Balance Method= ?

(Cost-Accumulated Depreciation) X 2 / Useful Life

Journal entry for depreciation?

dr Depreciation Expense (+E, -SE)

cr Accumlated Depreciation (+xA, -A)

Payroll deductions?

Income tax

FICA tax

Other deductions (donations, union dues, etc.)

Employer Payroll Taxes..

FICA tax (a "matching" contribution)

Federal unemployment tax

State unemployment tax

General Mills receives $100,000 cash in exchange for issuing 100 bonds at their $1,000 face value, so the bonds are issued at total face value (1,000 × $1,000 = $100,000).

dr Cash (+A) 100,000

cr Bonds Payable (+L) 100,000

General Mills issues 100 of its $1,000 bonds at a price of 107.26 percent of face value, the company will receive $107,260 (100 × $1,000 × 1.0726).

dr Cash (+A) 107,260

cr Bonds Payable (+L) 100,000

cr Premium on bonds Payable (+L) 100,000

General Mills receives $93,376 for bonds with a total face value of $100,000, the cash-equivalent amount is $93,376, which represents the liability on that date. These bonds are issued at a discount because the cash received is less than the face value of the bonds.

dr Cash (+A) 93,376

dr Discount on Bonds Payable (+xL, -L) 6,624

cr Bonds Payable (+L) 100,000

Assume that in 2000, General Mills issued $100,000 of bonds at face value. Ten years later, in 2010, the company retired the bonds early. At the time, the bond price was 103, so General Mills made a payment of $103,000.

dr Bonds Payable (-L) 100,000

dr Loss on Bond Retirement (+E, -SE) 3,000

cr Cash (-A) 103,000

Quick Ratio= ?

Want the ratio high

Times Interest Earned Ratio=?

Want the ratio to be above 1

Authorized Shares: the max number of shares of capital that can be issued to the public

Outstanding shares- shares that are owned by stockholders

Treasury Shares- Issued shares that have been reacquired by the corporation

Unissued shares- authorized but not yet issued

Stock Issuance

Initial Public Offering (IPO)- the first time a corporation issues stock to the public

National Beverage issued 100,000 shares of $0.01 par value common stock for $10 per share.

dr Cash (+A) (100,000 X $10) 1,000,000

cr Common stock (+SE) (100,000 x %0.01) 1,000

cr Additional Paid-in-Capital (+SE) ($1,000,000- $1,000) 999,000

Repurchase of stock

1. Send a signal that the company believe its stock is undervalued

2. Obtain shares to reisue for the purchase of other companies

3. Obtain shares to reissue to employees as part of stock purchase or stock option plans

National Beverage reacquired 50,000 shares of its common stock at $25 per share.

dr Treasury Stock (+xSE, -SE) 1,250,000

cr Cash (-A) 1,250,000

National Beverage reissued 5,000 shares of the Treasury Stock at $26 per share.